Summary sheet
The project consists of a multi component investment programme covering the period 2024-2029, that includes several electricity transmission schemes, from 60 kV to 400 kV, geographically dispersed throughout the country.
The aim is to reinforce and extend the country's electricity infrastructure (transmission lines and substations) by reducing losses, enhancing reliability and meeting new electricity demand. Additionally, the programme includes the integration of new renewable electricity generation capacity that will ensure a more sustainable and efficient power system.
The Project is a multi-component, multi-annual investment programme aimed at reinforcing and extending the electricity transmission network of Morocco and at integrating the additional renewable energy production.
The financing is strongly aligned with Morocco national targets for decarbonisation in the context of the Intended Nationally Determined Contributions of the country. The Project will contribute to EU policy objectives of sustainable energy infrastructure and combating climate change. It will be contributing to the following Sustainable Development Goals: SDG 1 (no poverty), SDG 7 (access to affordable, reliable and sustainable energy), in particular sub goal 7.2 (increase the share of renewable energy in the global energy mix), SDG 8 on inclusive and sustainable economic growth, SDG 13 (combat climate change), and SDG 17 (partnerships for the goals).
This operation is in line with EU priorities for Morocco and eligible under NDICI, as it contributes to climate change mitigation as well as to the development of social and economic infrastructure, specifically energy, the energy sector being one of EU's top priorities in the Southern Neighbourhood as defined notably in the EU-Morocco Green Partnership.
The Project will address several market failures. Individually, each sub-project addresses negative climate and environmental externalities through the reduction of carbon emissions and air pollution and the market failure associated with security of supply, which has dimensions of public good.
The Project will facilitate the development and/or expansion of regional economy. The economic rate of return and broader social benefits are expected to be respectively good and excellent for the sub-projects. The Project is supported by adequate governance and capabilities of the Promoter.
Finally, EIB's financial and non-financial contribution is excellent. The Bank is cooperating closely with KfW under Mutual Reliance Initiative (MRI) for Project due diligence and monitoring optimising project implementation for the Promoter. EIB will be the leading financing institution under the MRI with KfW. The loan has distinctive features such as long maturity and grace period which are not traditionally available on the market. The EIB provided an excellent level of technical support contributing to the improved structure of the Project and its components. Technical assistance was also provided on different aspects of the Project (notably E&S), enhancing its overall structure and its components.
The envisaged sub-projects (new transmission lines and substations from 60 kV to 400 kV) are expected to require a full Environmental and Social Impact Assessment (ESIA) study in accordance with national law. The exact requirements and status of the permitting procedures will also be further assessed during the appraisal. The promoter shall comply with EIB's Environmental and Social standards.
The promoter has to ensure that the project implementation will be done in accordance with the EIB's Guide to Procurement.
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